Benefits from higher education flow to all, or nearly all, persons in the United States directly or indirectly, and the costs of higher education are assessed against all, or nearly all, adults directly or indirectly. Few Americans are denied any benefits and few adults escape any costs. This report is concerned with the very complicated and important questions of who benefits from, who pays for, and who should pay for higher education. This report looks at the problems of costs and benefits more in their totality than has been done before, and presents a more detailed analysis. The appendices include estimated distribution of tax burden and institutional subsidies by income group, university research activities, and the family contribution to college costs in 1971-72. (Author/PG)